The following discussion focuses on Uruguayan history from the time of European settlement. For treatment of the nation in its regional context, see Latin America, history of.

Early period

Before the arrival of Europeans, the territory that is now Uruguay supported a small population estimated at no more than 5,000 to 10,000. The principal groups were the seminomadic Charrúa, Chaná (Chanáes), and Guaraní Indians. The Guaraní, who were concentrated in the subtropical forests of eastern Paraguay, established some settlements in northern Uruguay. The Charrúa moved to the shore in summer to fish and gather clams, fruits, and roots and moved inland in winter to hunt deer, rheas, and smaller game with bolas (stones connected by short ropes that are thrown to ensnare prey) and bows and arrows. Bands of eight to 12 families under a chief lived in villages of five to six houses made of matted windscreens. The Charrúa were known for their ferocity in battle, which they exploited to expand hunting grounds and capture women and children from other villages.

The first European to explore Uruguay was the Spanish navigator Juan Díaz de Solís in 1516, who, along with several of his men, was killed and eaten by Charrúa or Guaraní warriors. Ferdinand Magellan anchored at the future site of Montevideo in 1520, and Sebastian Cabot led a Spanish expedition up the Río de la Plata in 1526, but they found the Banda Oriental del Río Uruguay (“East Bank of the Uruguay River”) unattractive for settlement because of a lack of mineral wealth and the absence of Indians who could be readily enslaved or compelled to serve European interests. Jesuit and Franciscan missions were not established in Uruguay until the 1620s. By that time, however, the indigenous population had begun to collapse, as European diseases killed thousands.

Cattle from neighbouring regions, allowed to roam freely in Uruguayan territory, multiplied over the years until their numbers reached the millions. This process is said to have originated in 1603, when a governor of Paraguay, Hernando Arias de Saavedra, shipped a number of cattle and horses downstream from Asunción and the animals were landed on the Uruguayan riverbank. They were subsequently hunted for their hides by transient gauchos of mestizo ancestry. Groups of bandeirantes (explorers and slave hunters) from Portuguese Brazil also made incursions into the region and occasionally attacked the missions there. In 1680 the Portuguese established Colônia do Sacramento (Spanish: Colonia del Sacramento) on the Río de la Plata opposite Buenos Aires. There they carried on a contraband trade with Spanish settlers, who were collecting great quantities of silver from the mines of Upper Peru (now Bolivia). Spanish authorities countered this move by founding San Felipe de Montevideo as a fortified city in 1726 and attacking Colonia, which subsequently changed hands several times before being ceded to Spain in 1777. Montevideo became the major Spanish port of the South Atlantic, and the process of dividing the Banda Oriental into huge unfenced ranches began. In 1776 the Banda Oriental became part of the Viceroyalty of the Río de la Plata, the capital of which was Buenos Aires; however, Montevideo was still allowed to send shipments directly to Spain rather than clearing them first at Buenos Aires.

By 1800 there were approximately 10,000 people in Montevideo and another 20,000 elsewhere in Uruguay. About one-third of the total were African slaves, most of whom worked on estancias (ranches), in saladeros (meat-salting operations), and in households. Uruguay’s small but growing middle class included petty merchants, artisans, and military officers of mestizo and European ancestry. At the apex of society were wealthy traders, bankers, estancieros (ranch owners), and high-ranking government officials. Most of the elite originated from—or principally resided in—Catalonia, the Basque Country, the Canary Islands, and other Spanish European lands. Few Indian groups survived into the 19th century; the last large-scale massacre of Indian peoples occurred at Salsipuedes in 1831, and by mid century scant vestiges of indigenous culture remained.

The struggle for national identity

Montevideo, with its Spanish military and naval contingents, was a royalist stronghold when a movement for independence broke out in Buenos Aires in 1810. In the interior of the Banda Oriental, the fight against Spain was led from 1811 by José Gervasio Artigas, commander of the Blandengues, a mounted corps that the Spaniards had originally created to police the region. Artigas’s small army, which soon included a battalion of freed African slaves, was supported by rural inhabitants, antiroyalist Montevideo leaders, and an army from Buenos Aires. Following victories in the interior and in Montevideo, Artigas promoted a loose confederation of provinces of la Plata, but he also considered forming a rival confederation centring on Montevideo. These plans, coupled with Artigas’s growing power and egalitarian policies (including redistributing estanciero land to freed slaves and other poor Uruguayans), made him a threat to elites in Uruguay and centralists in Buenos Aires, who acquiesced when Portuguese Brazilian forces took over the Banda Oriental in 1820, and Artigas was driven into exile.

“Brazilianization” was resisted within the Banda Oriental and by Uruguayan exiles as well. Argentines felt increasingly threatened by the Brazilian presence, and their government was compelled to support Juan Antonio Lavalleja, one of Artigas’s exiled officers, and his “33 orientales” when they crossed the river to free their homeland in 1825. The ensuing war was a stalemate, but British diplomats mediated a settlement in 1827, and in 1828 a treaty was ratified creating Uruguay as a separate state and a buffer between Brazil and Argentina; the nation’s strategic location also served British interests by guaranteeing that the Río de la Plata would remain an international waterway. On July 18, 1830, when the constitution for the Oriental State of Uruguay was approved, the country had scarcely 74,000 inhabitants.

Uruguay’s first years of independence were disastrous. Twenty years of war and depredation had greatly reduced cattle numbers, and the lands and fortunes of many colonial families had been destroyed. Both Argentina and Brazil still coveted Uruguay. The factions of the first and second presidents, José Fructuoso Rivera and Manuel Oribe, battled each other in what became known as the Guerra Grande (“Great War”). Oribe’s adherents, who displayed white colours, became the Blanco (“White”) Party and controlled the interior. Rivera and his followers used red colours and became the Colorado (“Red”) Party, based in Montevideo. The Blancos, supported by armies of the Argentine dictator Juan Manuel de Rosas, besieged Montevideo during the period 1843–51. The Colorados were aided first by France and England, then by Brazil. When in 1851 the Guerra Grande ended without a clear victory for either side, the Uruguayan interior was devastated, the government was bankrupt, and the disappearance of an independent Uruguay had become a real possibility. Intellectuals wanted to abolish the political parties that had brought the country to such a low point, but the war had made too deep an impact on ordinary Uruguayans, who had become polarized into Colorados or Blancos. In 1865 the Colorados, aided by a Brazilian army, ousted the Blancos from power; however, the Paraguayan dictator, seeing that action as a threat to the regional balance of power, sparked the War of the Triple Alliance (1864/65–70), in which Brazil, Uruguay, and Argentina combined to defeat Paraguay. Uruguayan commerce was disrupted by the war, as well as by persistent political disputes, a civil war known as the Revolution of the Lances (1868–72), and Brazilian and Argentine involvement in Uruguayan affairs.

Modernization and reform

Development accelerated during the latter part of the 19th century as increasing numbers of immigrants established businesses and bought land. Partly through their efforts, sheep were introduced to graze together with cattle, ranches were fenced, and pedigreed bulls and rams were imported to improve livestock. Earnings from wool (which became the leading export in 1884), hides, and dried beef encouraged the British to invest in railroad building and also helped to modernize Montevideo—notably in its public utilities and transportation system—which thereby encouraged additional immigration. In 1876 the Uruguayan armed forces took over the government and, aided by improved communications, began to establish firmer control over the interior. However, public support for the regime eventually waned because of the brutality and corruption of some of its leaders, and a civilian Colorado government returned to power in 1890.

Blanco demands for a larger role in government escalated into the Revolution of 1897, led by Aparicio Saravia, which ended when the Colorado president, Juan Idiarte Borda, was killed by an assassin not associated with the Blancos. Although conflicts between Colorados and Blancos continued to impede economic development, by 1900 Uruguay’s population grew to one million—a 13-fold increase over the level of 1830. The Colorado leader José Batlle y Ordóñez was elected president in 1903. The following year the Blancos led a rural revolt, and eight bloody months of fighting ensued before Saravia was killed in battle and government forces emerged victorious. In 1905 the Colorados won the first largely transparent legislative election in 30 years, and domestic stability was finally attained.

Batlle, who had become a Colorado hero, took advantage of the nation’s stability and growing economic prosperity to institute major reforms, including increasing state intervention in economic matters. His administration helped expand cattle ranching, reduce the nation’s dependence on imports and foreign capital, improve workers’ conditions through far-reaching social reforms, and expand education. In addition Batlle abolished the death penalty, allowed women to initiate divorce proceedings, augmented the rights of children born out of wedlock, and reduced the political influence of the Roman Catholic church—reflecting growing trends toward social liberalization and secularization in Uruguay.

Batlle had two terms (1903–07 and 1911–15) in which to initiate his policies, but, realizing that his program might be reversed by a future president or dictator, he promoted a constitutional reform to end the presidency and replace it with a plural executive, the colegiado. Batlle’s audacious plan split the Colorados and reinvigorated the Blanco opposition, and in 1916 the colegiado was defeated in the country’s first election by secret ballot. Batlle retained a significant amount of prestige and support, however, which allowed him to strike a compromise that partly rescued the colegiado; thus, in a constitution promulgated in 1918, executive responsibility was split between the president and a National Council of Administration.

A consensus government emerged with policies that were more cautious than innovative, except in social legislation. Higher living standards were supported by a ranching economy that had stopped growing, a dilemma hidden by the high export prices of the late 1920s.

Economic and political uncertainties

In 1930 the Colorado presidential candidate, Gabriel Terra, successfully maneuvered through the political vacuum created by the death in 1929 of Batlle, who had held an increasingly complex political and governmental structure together. When the effects of the Great Depression hit Uruguay, President Terra first blamed the plural executive’s economic policies and then, supported by Blanco leader Luis Alberto de Herrera, carried out a coup in March 1933 that abolished the National Council and concentrated power in the hands of the president. Terra’s dictatorship, followed by the presidency of his brother-in-law General Alfredo Baldomir during the period 1938–42, formulated a conservative response to the Great Depression. The state interfered with labour unions, postponed social legislation, preserved as much as it could of the British market for Uruguayan meat, and halted government attempts to nationalize foreign, mainly British, enterprises in Uruguay. The government advocated free-market principles but was compelled to play a more direct role in the economy. It apportioned scarce foreign exchange, built a hydroelectric dam, and tried to ease unemployment and maintain political support by hiring public employees under a system of political quotas. Hard times also sped migration from the interior to Montevideo, where industrial development was encouraged. As a result of these factors, Uruguay emerged from the 1930s with a more urban population and a larger government bureaucracy.

At the onset of World War II, European nations began eagerly to buy Uruguay’s meat, wool, and hides, bringing a period of genuine prosperity. A new constitution in 1942 allowed all political parties to operate freely. The war also strengthened Uruguay’s manufacturing sector, which employed nearly 100,000 people by 1945. Increasing numbers of urban workers joined labour unions, and corporatist “salary councils” arranged for higher wages. The presidential election of 1946 was won by Tomás Berreta, a Batllista (member of the Colorado Batllista Party, founded by Batlle in 1919). After his sudden death, Vice President Luis Batlle Berres, Batlle’s nephew, became president.

During the early 1950s the Korean War stimulated high wool prices on the U.S. market, creating another economic boom for Uruguay. The resulting prosperity enabled the government of Batlle Berres to purchase the British-owned railroads and public utilities, inaugurate new state enterprises, encourage industrialization, subsidize agriculture, and reduce food prices. Unemployment virtually disappeared. A constitutional reform in 1951 replaced the presidency with a nine-member plural executive, the traditional cornerstone of the Batllista program. During this period Uruguay combined a strong democracy with the highest income per capita in Latin America. However, in the mid 1950s, when the end of the Korean War lowered wool prices, Uruguay’s ranching economy declined, as did the standard of living. Politicians, responding to voters’ demands, tried to keep consumption up, first by spending Uruguay’s foreign exchange, then by taking out foreign loans and devaluing the peso. Economic conditions deteriorated: annual inflation rates rose above 60 percent, public services broke down, industries closed, and large numbers of labourers and professionals emigrated.

Voter dissatisfaction brought the Blancos to power in 1958 for the first time since 1865. Although reelected for a second term, the Blanco administration failed to improve conditions, and in 1966 a new constitution was ratified, returning the country to the presidential system. Elections in that year brought new leadership under Colorado conservatives, but inflation and a production slump continued to grip the country, precipitating increasingly stronger protests followed by a government crackdown on students and unions. During this period guerrilla attacks were initiated in Montevideo by the Tupamaros, a leftist group named for Tupac Amaru II, an 18th-century Inca who had rebelled against Spanish rule. When the police could not stop the Tupamaros, the government unleashed the military, which defeated them in a systematic and brutal counterinsurgency campaign. Economic problems persisted, however, and in 1973 the military wrested control of the government from the nation’s discredited politicians.

The military regime

The military acted with a ferocity and thoroughness previously unknown to Uruguay. Thousands of people were arrested—reputedly giving the nation the highest ratio of political prisoners to population in the world—and numerous human rights abuses were perpetrated, including torture, killings, and disappearances. The junta also outlawed political parties, dissolved unions, and heavily censored the media in order to strengthen its hold on power and force a new economic outlook on the citizenry. The regime held wages down, forbade strikes, attracted capital from foreign banks and lenders by setting high interest rates, and encouraged industrialists and ranchers to borrow and modernize. Though real wages fell and many businesses failed because they could not compete with cheap imports, the policy had some successes, including an increase in manufactured exports, a building boom, and Montevideo’s reemergence as a banking and financial centre; in addition the government built roads and other public works. In 1980 voters rejected the military’s proposed new constitution in a plebiscite—much to the military leaders’ surprise, because they controlled the media and severely restricted the political opposition. The plebiscite greatly damaged the regime’s legitimacy.

Economic conditions also deteriorated. In the 1980s foreign loans became more difficult to acquire, and Uruguayan trade was limited when Argentina’s economy suffered a downturn, caused partly by the Falkland Islands War (1982). The military government, despite previous assurances, was compelled to let the exchange rate of the Uruguayan peso fall. Businesses, ranchers, and the government saw their debts dramatically increase. With Uruguay’s economic crisis worsening, the military reluctantly negotiated a return to democratic rule.

Civilian government

Julio María Sanguinetti, a Colorado Batllista, was elected president in November 1984 and inaugurated the following March. Sanguinetti attempted to appease the military—and to safeguard against a coup—by sponsoring a general amnesty (1986), despite calls for criminal trials. Uruguay’s enormous foreign debt inhibited economic recovery, but Sanguinetti refused to embark on dramatic economic programs that would have entailed high risks. A referendum in April 1989 upheld the amnesty law, but the Colorado Party lost the subsequent presidential election to the Blanco candidate, Luis Alberto Lacalle.

The Lacalle administration (1990–95) carried out economic reforms and made Uruguay a member of a regional economic bloc, the Common Market of the South (Mercosur), in 1991. Uruguay’s economy grew markedly, largely because of trade with its Mercosur partners, but the country also became more vulnerable to economic shifts in Brazil and Argentina. Lacalle’s policies were seen as a threat to Uruguay’s long-standing welfare system, and voters in a referendum rejected his plan to privatize the state-owned telephone company. This defeat, coupled with charges of government corruption, brought about a roughly three-way split in the 1994 elections between the Colorados, the leftist coalition Broad Front (Frente Amplio; FA), and the Blancos. Sanguinetti was elected to a second nonconsecutive term (1995–2000), and a constitutional amendment in 1996 simplified the method for electing the president (the old “double simultaneous voting” system, which had effectively combined primaries and final elections, had unfairly favoured the traditional parties). The Colorados retained the presidency in 2000 following the election of Jorge Batlle Ibáñez, son of Batlle Berres and great nephew of José Batlle y Ordóñez. Meanwhile, the FA held onto the mayoralty of Montevideo, which it had controlled for a decade.

In 2005 Tabaré Vázquez became Uruguay’s first leftist president, having secured a win in the 2004 presidential election. In concurrent legislative elections, the coalition of left-wing groups led by Vázquez—the Progressive Encounter–Broad Front (Encuentro Progresista–Frente Amplio; EP–FA)—won a majority in both houses of the General Assembly for the first time. During his term, Vázquez was credited with improving an economy that had been beset by years of negative growth; financing social programs; and investigating disappearances, murders, and other crimes committed under the military regime.

In the first round of the 2009 presidential election in October 2009, the EP–FA’s presidential candidate, José Mujica, a senator and former left-wing guerrilla, won just less than half the vote, which was not enough to avoid a runoff election against the runner-up, former president Lacalle of the Blanco Party. In a referendum, voters also rejected the proposed revocation of an amnesty law shielding military officers from prosecution for human rights abuses during the period of military rule. The amnesty law had been approved by voters in a 1989 referendum. In the November 2009 runoff election Mujica was elected president of Uruguay with more than half of the vote.